| France opened up its
online horse-racing and sports-betting industry to competition,
relaxing a state monopoly on gambling that traces back
to the 16th century as it looks to stabilize tax revenues
from online betting.
The move, timed to coincide
with the Fifa World Cup, is an attempt to crack down
on illegal betting websites while answering European
Commission's demands to liberalize national online gambling
monopolies.
17 licenses have been
awarded to 11 different operators, including Bwin Interactive
Entertainment and BetClic Enterprises, France's Authority
for Online Gaming Regulation (ARJEL) said in a statement.
Online poker will be authorized later this month, the
regulator added. The number of licenses will be limited.
Under pressure from
the European Commission, France has followed the lead
of Italy and issued online betting licenses to private
companies. France is one of the few countries that tax
the total amount bet as opposed to the revenue garnered
by the gambling company. Given this standard, France's
tax is relatively high.
Another issue for new entrants is online
casino games, such as online slots. Those games
are a very lucrative segment of the market but remain
banned in France for the moment, except for online poker.
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